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AN EXAMINATION OF THE TAX SUBSIDIES TO THE DAIRY SECTORS IN CANADA, GERMANY NEW ZEALAND AND THE UNITED STATES
Author(s) -
Dunlop Diane M.,
Perry Gregory M.,
Nixon Clair J.
Publication year - 1995
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1995.tb00779.x
Subject(s) - subsidy , ad valorem tax , value added tax , economics , tax policy , public economics , german , tax reform , business , international economics , economic policy , market economy , archaeology , history
Subsidies to agricultural producers through domestic tax and social programme policies are generally not included in producer subsidy equivalent (PSE) measures. This study examines the price induced distortions of domestic tax policy and social programmes on dairy trade between Canada, New Zealand, Germany, and the United States. The degree of tax subsidisation and the price subsidies needed to offset the tax and social programme advantages enjoyed by each country are estimated using a simulation model. Study findings suggest that current German taxation policy provides a substantial subsidy to dairy producers. Canadian and US farmers also have some trade advantages because of tax policy and social programmes.